Recessions or economic downturns are absolutely the worst time for retailers, manufacturers and suppliers to cut back on, or stop their marketing efforts. At the risk of sounding completely self-serving (I publish this magazine), I feel that for the good of our industry at all levels, I need to tell the truth. Fortunately this truth is not my truth, but a well researched topic that has been written up and reported for many decades by such esteemed past and present publishing companies as McGraw-Hill, Crain Publishing, Penton and Reed-Elsevier (the publishers of Furniture Today.) OEM suppliers, finished goods manufacturers and retailers have all been interviewed during recessions and downturns, in fact, several times over several decades in the 60’s, 70’s and the 80’s. For suppliers and manufacturers who market to other manufacturers or to retailers, the findings were very clear. Those companies who cut back on advertising and other forms of marketing to save costs and tighten their belt lost real sales and market share as compared to those companies that toughed it out and held on to a revised, but strong marketing plan. Worse yet, those companies that pulled advertising, cut back on trade shows or mailings or store promotions found that once the economy recovered they took much longer than their competitors to regain business, market share, even top-of mind awareness among their customers. Executives who opted to cut the "obvious" low hanging fruit of marketing dollars suffered the worst, not only during bad times, but they continued to suffer because it took much longer for their company to recover with the return of good times. I’m not making this up; the studies have been published time and time again!

Times are tough for many in the bedding/mattress industry. As the sub-prime mortgage crisis rolls on and housing starts and the value of real estate decline, it has a direct effect on home furnishings and mattress/bedding retailers. Gasoline prices, heating oil prices, and the prices for petroleum-based products have all skyrocketed. Consumer debt and the enormous burden created by billions of dollars spent overseas for the military, security and law-enforcement have created massive deficits which are further affecting the average consumer. Consumers are having to make hard choices, to hold off spending and to select carefully among spending options when they do spend. The "R" word is being used more and more in the media. There is a real sense of fear and distress about the near future in some quarters.

One well-known independent manufacturer in the mattress/bedding industry informed me that the cost for the plastic in which he wraps finished mattresses increased astronomically in price; that the costs to comply with FR regulations have significantly increased prices (some have suggested as much as $100 per unit sold); and that shipping and fuel costs have increased at an alarming level. This manufacturer, who supplies a lot of independent mattress/bedding retailers shared that retail orders had cut back, and that overall market conditions were worse than they had been in over 20 years. No wonder so many business executives are looking to cut costs, reduce overhead and develop a survival strategy.

The business/financial decisions required of retailers, manufacturers and suppliers today is not easy in today’s market. Payroll, employee benefits, government payments, utilities, cost of equipment, materials, goods and stocked inventory all compete with research & development and marketing. Retailers need to figure out what stock they need on their floor; what has moved well in the near past, and even in past bad times, and will move well in the future. A survivalist, short-term mindset sets in; people cut budgets; and strap in for what they hope is a short term down turn . . . If only we can successfully ride out this sales slump storm, the sun will come out tomorrow.

There is nothing simple about any of this for retailers from the largest furniture store, department store or sleep shop chain to the smallest one or two store mom and pop bedding/mattress boutique. In the midst of all this of all these really difficult survival strategy decisions, we simply ask you to keep in mind what is really happening when a retailer, manufacturer or supplier cuts back or discontinues marketing, advertising, direct marketing, on-line marketing and publicity. While these dollars seem relatively painless to cut back on for the moment, the truth is that, spent wisely supporting the right product, the right value, the right branding, the right message and the right offer, these are the dollars that find and bring in your customers in the short haul and in the long haul. Strong brands and well known stores may survive for a brief period on the momentum of past advertising. However in a relatively short period of time, and usually sooner than you think, store, product and brand awareness begin to decline among your customers. Unless they have an immediate need (a member of the family dies and a consumer needs a funeral home, or the car breaks down and the customer needs a mechanic), your customers are going about their lives, often cutting back to pay the heating bill or the gasoline bill or the interest on the college loan.

If you think of marketing as really identifying the needs, wants and desires of your customers, the development of the right products and services to meet those needs, the distribution and display of those products and services and finally the advertising, presentation, sales, and successful delivery of those goods and services, then all of ourbusinesses are, or should be driven by marketing.

Successful suppliers, manufacturers and retailers understand early on that we are not in the business of creating a widget or many widgets and then after the fact trying to force them down the throat of reluctant consumers. Our business is to understand the motives, desires, wishes, and aspirations of our past, present and future customers as best we can, and then to design, create, produce, distribute and market products and services that fulfill those needs, wants and desires as we manage our business and make a profit.

The research I have referred to can be obtained from major publishers and business associations. These are truths. You may have to adjust your media mix and your marketing program elements, but if you seriously cut back or eliminate your marketing communications, you will lose business volume and market share during down times as opposed to your competitors who continue their programs. Yes it is also a fact that businesses that cut back or eliminate marketing/advertising during down turns will also take much longer to recover, to regain awareness and market share as opposed to those businesses that sharpen their program and tighten the belt, but continue on with a pro-active marketing strategy.

An appeal for mattress/bedding manufacturers and suppliers: Please keep in mind these business-to-business studies on "advertising/marketing during a recession" as you navigate through the rough waters ahead. Whether you choose ISPA’s SLEEP SAVVY, BEDTIMES, Reed Business’s Furniture Today or BEDROOM Magazine (or a mix of any and all these publications) to reach the mattress bedding retailers and other manufacturers, just bear in mind that done right, your marketing program with these publications is central to what you do with your business in the future. Sharpen your pencils, sharpen your swords, put on your armor and be ready for battle, but do not lay your marketing sword down . . . especially if your competitors are fully armed and engaged in the battle.